Bumi Commerce, Maybank, Sime Darby top picks in FBM KLCI, says CIMB Research

Tags: CIMB Research | FBM30

Written by Surin Murugiah

Wednesday, 17 June 2009 11:28

CIMB Research said in the June review of the 30 component stocks of the FBM KLCI, which will take over as the market benchmark July 6, there were surprisingly no changes at all.

It said this is disappointing for investor favourites such as IJM Corp, Gamuda and SP Setia, which did not make the cut.

Banks and PLANTATION []s will make up 55% of the index, it said in a note today.

Including power, gaming and telco, the top five sectors account for 85% of the new index, said the research house.

"As for the pecking order, the top three stocks in the FBM KLCI will be Bumi Commerce, Maybank and Sime Darby," it said.

As investors have less than three weeks to adjust their portfolios before the new index takes effect, the impact on the market should be significant, it said.

"The net impact should also be positive, as big-cap liquid stocks with high free float also happen to be blue chips," it said.

CIMB Research maintained its overweight recommendation and year-end KLCI target of 1,220 points.

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Last Updated on Wednesday, 17 June 2009 11:30

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